Serbia`s Minister of Economy and Regional Development Nebojsa Ciric said that the government at its meeting yesterday adopted a programme on the revival of large industrial centres of special interest for the Republic in 2011 as well as a Decree on conditions and how to attract direct investment.
Ciric told a press conference that the aim is to revive major industrial centres in 15 local government units, where 20-25% of the population of Serbia live.
The investors will receive incentives from €2,000 to €10,000 per workplace, he said and explained that communities with more than 50,000 inhabitants and an unemployment rate above 20% are eligible.
The Minister said that Pirot, Kragujevac and Zrenjanin are exempted, since there are free zones there.
Apart from Nis, Kraljevo, Zajecar and Novi Pazar, investors from Loznica, Leskovac, Krusevac, Jagodina, Sremska Mitrovica, Aleksinac, Paracin, Backa Palanka, Ruma, Vrsac and Bor will receive grants, he said.
Ciric said that the total allocated funds cannot be above 50% of investment for large companies and 100% for small and medium enterprises.
Minister of Environment, Mining and Spatial Planning Oliver Dulic said that the government today rounded up the policy of helping the construction industry in crisis.
The past few months, after two years of crisis, saw a growth in the construction sector, he said and explained that this is due to previous measures.
Dulic said that at its meeting today the government adopted a Decree on measures of support to the construction industry by subsidising interest on loans to finance housing construction in 2011.
A report on the negotiations of the Ministry of Finance and the Council of Europe Development Bank for a project of social housing in Serbia in 2011 was also adopted today, he said.
The Minister said that the results of government actions should soon be seen and recalled that the government has intervened in the past two years because of the difficult situation in the construction sector during the economic crisis.
Owing to government measures of support, 245 public buildings are being built, as well as 4,500 apartments in the neighbourhood “Stepa Stepanovic”.
He also announced the opening of a site in the “Dr Ivan Ribar” neighbourhood in October, where between 1,100 and 1,200 apartments will be built.
Thanks to the CoE Development Bank’s loan, 1,700 apartments will be built and will be sold at very favourable conditions, he said.
Dulic said that the construction sector employs between 100,000 and 120,000 people.
The Minister also announced that next week, representatives of the government and National Bank of Serbia (NBS) will discuss the new NBS measures regarding housing loans.